Iberdrola raises interim dividend 8.7% to 0.275 euros per share against 2026 earnings
Key Facts
Iberdrola set its interim dividend against 2026 earnings at 0.275 euros per share before tax, an increase of 8.7%, in an announcement accompanying its financial results on 21 October 2026. The company said in its statement that the amount would be paid "against 2026 earnings" as an interim distribution to shareholders. The new amount compares with an interim dividend against 2025 earnings of 0.253 euros per share before tax, according to the company's previous announcement of the corresponding dividend. The announced interim dividend totals 1.835 billion euros, according to the Iberdrola statement setting out the amount payable per share. The corresponding distribution in the previous year totalled 1.690 billion euros, marking a year-on-year increase in the amount allocated to shareholders. On the day the results and dividend were announced, Iberdrola shares closed at 21.540 euros, up 1.46% on 21 October 2026, according to Investing.com data.
Iberdrola previously announced dividends for the 2025 financial year of 0.68 euros per share, as part of total annual payments of 4.5 billion euros. In that dividend announcement, the company said the total amount had risen 12% from the previous year, placing the new interim dividend in the context of earlier increases in shareholder payments. Iberdrola's flexible dividend programme allows shareholders to choose to receive their entitlement in cash, according to the terms published on the programme's webpage. Shareholders may also choose to receive new shares instead of cash, one of the alternatives the company offers for the distribution. The programme also includes the option of selling allocation rights in the market, alongside the options of receiving cash or new shares. According to Iberdrola, shareholders who do not notify their custodian of another choice will automatically receive "newly issued, fully paid-up shares".
The dividend announcement came as Iberdrola posted reported net profit of about 5.8 billion euros for the first nine months of 2026, up 10%, according to the company's earnings statement. Adjusted net profit for the same period reached 5.1 billion euros, an increase of 9%, according to the statement. Iberdrola raised its forecast for adjusted net profit growth in the 2026 financial year to "at least 10%" alongside its nine-month results. Over a longer horizon, the company said it was targeting average annual adjusted net profit growth of 10% over the next five years, according to Investing.com. Its strategic plan also includes a minimum shareholder remuneration target of 0.64 euros per share for 2028, according to the dividends page on its website.
On spending, Iberdrola's total investment during the reporting period reached 10.1 billion euros, according to the operational and financial information published by the company. Networks accounted for 62% of total investment during the period, representing the largest share of announced capital spending. Investment in networks reached 6.3 billion euros, up 28% year on year, according to the nine-month earnings statement. Network assets reached 56 billion euros at the end of the reporting period, according to Iberdrola's operational and financial results webpage. Under its strategic plan, the company intends to invest a total of 58 billion euros through 2028, according to its statement on the plan. The plan allocates 65% of that investment to the United Kingdom and the United States as part of the geographical distribution of planned spending through that year.
According to the flexible dividend programme's timetable, Iberdrola will announce on 8 January 2027 the number of allocation rights required to receive a new share. The announcement will also include details of the cash dividend and any settlement amount, according to the dates published on the company's shareholder website. The shares will begin trading ex-dividend on 12 January 2027, also the start of the period for choosing how to receive the entitlement and trading rights. The election period and trading in allocation rights will continue until 25 January 2027, defining the window available for shareholders to choose one of the programme's alternatives. The company set 1 February 2027 as the dividend payment date, according to its shareholder and investor dividends webpage. Subsequently, Iberdrola intends to provide further details on its targets, investments and growth prospects at its Capital Markets Day scheduled for March 2027.